USDA Invites Comments on the Implementation of the e-Connectivity Pilot Program

U.S. Secretary of Agriculture Sonny Perdue announced USDA is inviting comments on the implementation of the e-Connectivity Pilot Program established in the Consolidated Appropriations Act of 2018 on March 23, 2018.

USDA is developing this pilot program to catalyze private investment and bring broadband to unserved rural areas of the country. The new program provides a unique opportunity to develop modern methods to leverage federal funds to increase private investment in broadband services for as many rural American homes, businesses, farms, schools and health care facilities as possible.

“I have traveled extensively across the nation, and everywhere I go I have heard how important broadband is to rural Americans,” Secretary Perdue said. “Reliable and affordable internet e-Connectivity truly is the key to prosperity in the 21st Century, and I’m pleased Congress recognized this need and has provided this critical funding. Broadband e-Connectivity is the next interstate highway system of global commerce, and connecting rural areas to broadband will be a game-changer for our entire nation. It is not just a federal issue; our success will be forged through partnerships.”

According to a 2018 report by the Federal Communications Commission, 80 percent of the 24 million American households that do not have reliable, affordable, high-speed internet are in rural areas. Without e-Connectivity, rural Americans cannot reach their full productivity in the workplace, receive the best education in schools nor the finest health care in hospitals.

This rural broadband pilot program was proposed by President Trump and was made possible by a $600 million appropriation from Congress in the Consolidated Budget Act of 2018. As a result, USDA is excited to be able to create new funding and finance offerings through this pilot program to expand rural broadband in underserved rural and tribal areas.

The framework outlined by Congress allows these new federal funds to be deployed in rural areas with a population of 20,000 or less. A wide variety of entities is eligible for funding, including incumbent and competitive rural telephone and broadband service providers, rural electric cooperatives, private firms (but not sole proprietors or partnerships), nonprofits and governmental bodies. Rural areas with current internet service speeds of 10 megabits per second (Mbps) download and 1 Mbps upload at the household will be eligible to apply for the pilot program funds. The requirements on build-out speeds are not specified by the law and are therefore under development. See page 52 of the legislation for the full text (PDF, 2 MB).

USDA is seeking input as we develop the rules and requirements of the e-Connectivity Pilot Program. All stakeholders with an interest in rural broadband deployment are welcome to contribute. Specifically, comments on the following issues are sought:

Ways of evaluating a rural household’s “sufficient access” to broadband e-Connectivity at speeds of 10 Mbps downstream and 1 Mbps upstream, and how broadband service affordability should be factored in.

Best options to verify speeds of broadband service provided to rural households.

Best leading indicators of the potential project benefits for rural industries such as agriculture, manufacturing, e-commerce, transportation, health care and education, using readily available public data.

USDA’s goal is to make the most effective use of these new and innovative funds through utility partnerships, where possible. Public input on methods to evaluate the viability of applications that include local utility partnership arrangements is also being sought.

Comments are due on or before 5 p.m. Eastern Daylight Time on Monday, Sept. 10, 2018 and can be submitted by either of the following methods:

Federal eRulemaking Portal: Go to www.regulations.gov and, in the lower “Search Regulations and Federal Actions” box, select “Rural Utilities Service” from the agency drop-down menu, then click “Submit.” In the Docket ID column, select RUS-18-TELECOM-0004 to submit or view public comments and to view supporting and related materials available electronically.

In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. As proven by the report, e-Connectivity is more than just connecting rural America to rest of the world. It is a vital tool for productivity, education and health care. These investments will be key catalysts for facilitating rural prosperity through economic development, workforce readiness and improving quality of life.

USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community services such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov.